MANILA, Philippines, November 26, 2024 — Lenovo Group Limited (HKSE: 992) (ADR: LNVGY), a global leader in technology, reported a 24% year-on-year revenue growth in Q2 FY2024/25, reaching $17.9 billion. Net income grew 48% to $404 million (non-HKFRS), marking a strong quarter fueled by the company’s investments in hybrid AI innovation and strategic diversification.
Q2 2024 highlights are as follows:
- Revenue Growth Across All Segments: Lenovo’s Intelligent Devices Group (IDG) led with $13.5 billion revenue, boosted by AI PC shipments reaching double digits in China. Smartphone revenue increased by 43%, while tablet revenue grew by 19%.
- Infrastructure Expansion: The Infrastructure Solutions Group (ISG) saw a 65% revenue surge, driven by cloud demand and AI workloads leveraging liquid cooling technology.
- Service Excellence: The Solutions and Services Group (SSG) maintained its streak of double-digit growth for the 14th consecutive quarter, achieving a 20% operating margin.
Chairman and CEO Yuanqing Yang attributes the growth to Lenovo’s hybrid AI strategy and continued innovation in AI-enabled devices. The company’s R&D spending increased by 10% to $548 million, enhancing its product offerings and market differentiation.
Lenovo also declared an interim dividend of 8.5 HK cents per share and expects its momentum to persist, with AI products projected to represent 80% of the PC market by 2027.
ESG and Corporate Achievements include the following
- Ranked #1 on Fast Company’s list of top workplaces for AI innovators.
- Strong performance in the Hang Seng Corporate Sustainability Index.
As Lenovo leverages its hybrid AI capabilities, the company is positioned to accelerate its industry leadership and maintain its financial growth trajectory.
LENOVO GROUP LIMITED FINANCIAL SUMMARY
For the quarter ended September 30, 2024 (in US$ millions, except per share data)
Q2 24/25 | Q2 23/24 | Y/Y CHG | ||
| Revenue | 17,850 | 14,410 | 24% | |
| Gross profit | 2,796 | 2,522 | 11% | |
| Gross profit margin | 15.7% | 17.5% | (1.8) pts | |
| Operating expenses | (2,145) | (2,008) | 7% | |
| R&D expenses (included in operating expenses) | (548) | (498) | 10% | |
| Expenses-to-revenue ratio | 12.0% | 13.9% | (1.9) pts | |
| Operating profit | 651 | 514 | 27% | |
| Other non-operating income/(expenses) – net | (178) | (156) | 13% | |
| Pre-tax income | 473 | 358 | 32% | |
| Taxation | (90) | (69) | 31% | |
| Profit for the period | 383 | 289 | 33% | |
| Non-controlling interests | (24) | (40) | (38)% | |
| Profit attributable to equity holders | 359 | 249 | 44% | |
| Profit attributable to equity holders- non-HKFRS[1] | 404 | 273 | 48% | |
| EPS (US cents) Basic Diluted | 2.92 2.78 | 2.09 1.99 | 0.83 0.79 |
FAQs
What was Lenovo’s Q2 FY2024/25 revenue?
Lenovo reported $17.9 billion in revenue, a 24% year-on-year increase.
How much did Lenovo’s net income grow in Q2 2024?
Net income increased by 48% to $404 million (non-HKFRS basis).
What drove Lenovo’s revenue growth?
The growth was driven by AI innovation, strong performance across all business groups, and strategic investments in R&D.
What are Lenovo’s projections for AI PCs?
Lenovo expects AI PCs to comprise 80% of the PC market by 2027.
What is Lenovo’s interim dividend for Q2 FY2024/25?
The company declared an interim dividend of 8.5 HK cents per share.
How is Lenovo advancing its hybrid AI strategy?
Lenovo is investing in R&D, launching AI PCs globally, and buil